Sept 19 Accessories retailer Claire's Stores
Inc, owned by Apollo Global Management LLC, said it was
in advanced talks with a lender to allow its debt exchange
program to proceed and release much-needed cash.
The retailer said the lender related to its Europe credit
facility waived declaring a default related to its fixed charge
cover ratio covenant, according to a regulatory filing.
The company also received a waiver under its U.S. credit
agreement, according to the filing.
Claire's, which was taken private in 2007 by Apollo in a
leveraged buyout valued at about $3.1 billion, missed a $77
million interest payment last week.
The company said it was continuing to pay employees,
suppliers and trade creditors. (bit.ly/2cZpw8u)
The retailer, known for its affordable jewelry and ear
piercing services, has seen losses widen while its debt load has
swollen to $2.5 billion, as more people shop online and take
their teen and pre-teen girls to malls less frequently.
(Reporting by Narottam Medhora in Bengaluru)